Pubdate: Sat, 07 Nov 2015
Source: Ukiah Daily Journal, The (CA)
Copyright: 2015 The Ukiah Daily Journal
Contact: http://www.ukiahdailyjournal.com/feedback
Website: http://www.ukiahdailyjournal.com/
Details: http://www.mapinc.org/media/581
Author: Adam Randall

CALIFORNIA BOARD OF EQUALIZATION FURTHERS EDUCATION IN RECENT MEDICAL 
MARIJUANA LEGISLATION

California State Board of Equalization Chairman Jerome E. Horton 
hosted a medical marijuana industry town hall meeting Friday 
afternoon from Los Angeles with participants attending in person, or 
by phone, to hear about some of the upcoming challenges being 
presented with the new medical marijuana laws set to become effective 
Jan. 1, 2016.

Participants learned about legislation, initiatives and tax laws that 
will now affect the medical marijuana industry.

State Assemblyman Mike Gipson, D-Carson, was on hand to answer 
questions, along with representatives from the BOE, Internal Revenue 
Service, Franchise Tax Board, Employment Development Department, the 
Department of Consumer Affairs and the LA County Assessor's Office.

"Our role is to have this robust conversation, which I think is very 
important, and where we go from here," Gipson said. "We want to make 
this transition as easy as possible."

Sam Chilakos, of Southern California law group Ivie, McNeill and 
Wyatt, said it will likely take the state a year or so to get up to 
speed on the new regulations.

"The existing medical marijuana legal situation came about with 
Proposition 215," he said. "Since then, there have been a number of 
efforts by the legislature to clarify what the law was."

The laws of today may very well change by 2016, according to Horton, 
who pointed out the proposed 20 or so marijuana related initiatives 
currently being sought to be placed on the November 2016 ballot, some 
of which involve the legalization of recreational marijuana in the 
state of California.

"No one knows what initiative will be passed by the people of 
California," Horton said.

Compliance with the current laws was being stressed Friday, 
regardless of what may happen in 2016.

Those involved in the medical marijuana industry have until 2018 to 
become licensed at the local and state levels, with state cities and 
counties being encouraged to revise local initiatives by March 2016 
reflecting governance or lose all right to do so.

On Tuesday, the Mendocino County Board of Supervisors repurposed its 
ad hoc committee on marijuana issues to immediately undertake the 
task of possibly altering its local ordinance.

Horton said there are still outstanding issues with the new 
regulations within the medical marijuana industry, including the 
"cash only" aspect of the business, which may still deter those from 
paying their taxes in cash to the BOE, because they become subject to 
a 10 percent penalty fee.

Gipson said he is working to address the penalty fee issue with 
legislation and hopefully moved forward when the Legislature 
reconvenes in January.

Similarly, Assemblyman Jim Wood, D-Healdsburg, is seeking to tackle 
the specific tax issues and cash aspects of the business before the 
state Legislature in January.

Wood's bills, AB 1548 and 1549, are proposing to implement specific 
cultivation tax rates on the medical marijuana industry, while 
proposing a type of state banking system for those who operate with 
cash only and have been unable to seek regular banking because of 
their cash profits from marijuana.

"I think the key here is to make sure you are in compliance with all 
state laws," Horton said.

He said the exact fees are going to be a complicated process, but one 
model proposes a 15 percent excise tax, but the overall question 
Horton pointed out is, will there will be enough taxes to mitigate 
the potential negative impacts.

"It will be a complicated analysis that will take place over the next 
two years," Horton said.
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MAP posted-by: Jay Bergstrom